Statistics

Introduction to Statistics: -
Stats Definition: - Stats is the science of collecting, organizing and
analyzing data.

Data: - Facts or pieces of information

E.g.: - 1. Height of student in classroom

2. No. of sales in term of revenue of a company

3. IQ of students in classroom

Type of Statistics: -

1. Descriptive Statistics
2. Inferential Statistics

1. Descriptive Statistics: - it consists of organizing summarizing and

Visualizing data.

I. Measure of Central Tendency: -

 II. Measures of Dispersion: -

III. Different type of distribution of data: -

i. Bernoulli Distribution
ii. Uniform Distribution
iii. Binomial Distribution
iv. Normal or Gaussian Distribution
v. Exponential Distribution
vi. Poisson Distribution

2. Inferential Statistics: - Inferential statistics are used to make conclusions

about the population by using analytical tools on the sample data.
Measures of inferential statistics are
T-test
Z-test
CHI Square Test
Anova test
Hypothesis testing
P-Value
Significance value
E.g.: - Let say there are 10 Cricket Camps in Bangalore and you have collected the
height of cricketers from one of the camps.

Height is recorded are [175cm,180cm,140cm,140,135cm,160cm,135cm]

(Sample data)

a. Descriptive Question: -
IV. What is the average height of the entire camps
V. Disturbance of a data
VI. 140cm how many STD it is away from mean

b. Inferential Question: -
• Are the average height of a players of camp1 similar to that of
camp2

Sample
data

➢ Population and Sample data: -

• Population Data (N): - Population is a group or a superset of data that
you are interested in studying.
• Sample Data (n): - a sample is a subset of population data.
 ➢ Types Of Data: -

No ranks Ranks Whole Numbers Any Value

E.g.:- Gender, Blood E.g.:- Customer E.g.:- No. of children e.g.:- House price in
feedback {1, 2,3,4,5} in a family Bengaluru
Group, Colors,
No. of bikes Length of river
location, cities, days
No. of people working

e.g.:- No.
of children in a

Family

➢ Scales of Measurement: -the variables or numbers are defined and

categorized using different scales of measurements. Each level of
measurement scale has specific properties that determine the various use of
statistical analysis
There are four different scales of measurement.

• Nominal Scale
• Ordinal Scale
• Interval Scale
• Ratio Scale

I. Nominal Scale data: - A nominal scale is the 1st level of measurement scale in
which the numbers serve as “tags” or “labels” to classify or identify the objects. A
nominal scale usually deals with the non-numeric variables or the numbers that do
not have any value
• Qualitative/ Categorical Data
• E.g.: - Gender, color, Labels
• Order or rank does not matter

II. Ordinal Scale Data: - The ordinal scale is the 2 nd

level of measurement
that reports the ordering and ranking of data without establishing the
degree of variation between them. Ordinal represents the “order.”
 Ordinal data is known as qualitative data or categorical data. It can be
grouped, named and also ranked.
• Rank is important
• Order matters
• Difference cannot be measured
• Example:

o Ranking of school students – 1st, 2nd, 3rd, etc.

o Assessing the degree of agreement
▪ Totally agree
▪ Agree
▪ Neutral
▪ Disagree
▪ Totally disagree

III. Interval Scale Data: - The interval scale is the 3

level of measurement
rd

scale. It is defined as a quantitative measurement scale in which the

difference between the two variables is meaningful. In other words, the
variables are measured in an exact manner, not as in a relative way in
which the presence of zero is arbitrary.
• The order matters
• Difference can be measured
• The ratio cannot be measured
• No ‘0’ starting point
• Example:

• Likert Scale
• Net Promoter Score (NPS)
• Bipolar Matrix Table
• IQ

IV. Ratio Scale Data: - The ratio scale is the 4th level of measurement
scale, which is quantitative. It is a type of variable measurement scale.
It allows researchers to compare the differences or intervals. The ratio
 scale has a unique feature. It possesses the character of the origin or
zero points.

• The order matters

• Differences are measurable (Ratio)
• Contant a “0” Starting point
• E.g.: -
o Students marks in a class

❖ Descriptive Statistics

1. Measure of Central Tendency: -

o Mean
o Median
o Mode

➢ Mean: - The mean represents the average value of the dataset. It can be
calculated as the sum of all the values in the dataset divided by the number
of values.

➢ Median: - Median is the middle value of the dataset in which the

dataset is arranged in the ascending order or in descending order.
When the dataset contains an even number of values, then the median
value of the dataset can be found by taking the mean of the middle two
values. Consider the given dataset with the odd number of
observations arranged in descending order – 23, 21, 18, 16, 15, 13, 12, 10, 9,
7, 6, 5, and 2
Here 12 is the middle or median number that has 6 values above it and 6
values below it.

Now, consider another example with an even number of observations that are
arranged in descending order – 40, 38, 35, 33, 32, 30, 29, 27, 26, 24, 23, 22, 19,
and 17

When you look at the given dataset, the two middle values obtained are 27
and 29. Now, find out the mean value for these two numbers.
i.e., (27+29)/2 =28
Therefore, the median for the given data distribution is 28.
➢ Mode: - The mode represents the frequently occurring value in the
dataset. Sometimes the dataset may contain multiple modes and, in
some cases, it does not contain any mode at all.

Consider the given dataset 5, 4, 2, 3, 2, 1, 5, 4, 5

Since the mode represents the most common value. Hence, the most
frequently repeated value in the given dataset is 5.

2. Measures of Dispersion: - Dispersion is the state of getting

dispersed or spread. Statistical dispersion means the extent to which
numerical data is likely to vary about an average value. In other words,
dispersion helps to understand the distribution of the data.
I. Variance: -

• The sample variance is divided by n-1 so that we can create an

Unbiased estimator of the population variance

• More the spread more the variance

II. Standard Deviation: - The square root of the variance is known as

the standard deviation i.e. S.D. = √σ.
• A standard deviation is used to determine how estimations for a
group of observations (i.e., data set) are spread out from the
mean (average or expected value).
• How many STD Xi is away from mean
➢ Random Variables: - A random variable is a process of mapping the
output of a random process or experiment to a number.
E.g.: - Tossing a coin
Rolling a dice

➢ Sets: -
A= {1,2,3,4,5,6,7,8}
B= {3,4,5,6,7}

I. Intersection: -
A ∩ B = {3,4,5,6,7}

II. Union: -
A ∪ B = {1,2,3,4,5,6,7,8}

III. Difference: -
A-B= {1,2,8}

IV. Subset: -
A B = False
B A= True
 V. Superset: -
A B = True
B A= False

❖ Histograms and Skewness: -

Histogram: -
Ages= {10,12,14,18,24,30,35,36,37,40,41,42,43,50,51}
Bins, Bin size

No. of Bins=50/5=10
Bin size=5

Skewness: - Skewness can be defined as a statistical measure that

describes the lack of symmetry or asymmetry in the probability distribution
of a dataset. It quantifies the degree to which the data deviates from a
perfectly symmetrical distribution, such as a normal (bell-shaped)
distribution. Skewness is a valuable statistical term because it provides
insight into the shape and nature of a dataset’s distribution.
A. No Skewed: -

B. Right Skewed: -

Mean > Median > Mode

 C. Left Skewed: -

Mean < Median < Mode

❖ sampling Techniques: -
A. Simple random sampling:-
Example: Simple random sampling:- You want to select a simple random sample of
1000 employees of a social media marketing company. You assign a number to every
employee in the company database from 1 to 1000, and use a random number
generator to select 100 numbers.
B. Stratified sampling:-
Stratified sampling involves dividing the population into subpopulations that may
differ in important ways. It allows you draw more precise conclusions by ensuring
that every subgroup is properly represented in the sample.

To use this sampling method, you divide the population into subgroups (called strata)
based on the relevant characteristic (e.g., gender identity, age range, income bracket,
job role).

C. Systematic sampling:-
Systematic sampling is similar to simple random sampling, but it is usually slightly
easier to conduct. Every member of the population is listed with a number, but instead
of randomly generating numbers, individuals are chosen at regular intervals.

Example: Systematic sampling: - All employees of the company are listed in

alphabetical order. From the first 10 numbers, you randomly select a starting point:
number 6. From number 6 onwards, every 10th person on the list is selected (6, 16,
26, 36, and so on), and you end up with a sample of 100 people.
D. Convenience sampling:-
A convenience sample simply includes the individuals who happen to be most
accessible to the researcher.

This is an easy and inexpensive way to gather initial data, but there is no way to tell if
the sample is representative of the population, so it can’t
produce generalizable results. Convenience samples are at risk for both sampling
bias and selection bias.

Example: Convenience sampling: - You are researching opinions about student

support services in your university, so after each of your classes, you ask your fellow
students to complete a survey on the topic. This is a convenient way to gather data,
but as you only surveyed students taking the same classes as you at the same level,
the sample is not representative of all the students at your university.
E. Purposive sampling:-
This type of sampling, also known as judgement sampling, involves the researcher
using their expertise to select a sample that is most useful to the purposes of the
research.

It is often used in qualitative research, where the researcher wants to gain detailed
knowledge about a specific phenomenon rather than make statistical inferences, or
where the population is very small and specific. An effective purposive sample must
have clear criteria and rationale for inclusion. Always make sure to describe
your inclusion and exclusion criteria and beware of observer bias affecting your
arguments.

Example: Purposive sampling:- You want to know more about the opinions and
experiences of disabled students at your university, so you purposefully select a
number of students with different support needs in order to gather a varied range of
data on their experiences with student services.

F. Cluster sampling:-
Cluster sampling also involves dividing the population into subgroups, but each
subgroup should have similar characteristics to the whole sample. Instead of sampling
individuals from each subgroup, you randomly select entire subgroups.

If it is practically possible, you might include every individual from each sampled
cluster. If the clusters themselves are large, you can also sample individuals from
within each cluster using one of the techniques above. This is called multistage
sampling.

This method is good for dealing with large and dispersed populations, but there is
more risk of error in the sample, as there could be substantial differences between
clusters. It’s difficult to guarantee that the sampled clusters are really representative
of the whole population.

Example: Cluster sampling: - The company has offices in 10 cities across the country
(all with roughly the same number of employees in similar roles). You don’t have the
capacity to travel to every office to collect your data, so you use random sampling to
select 3 offices – these are your clusters.
❖ Covariance and Correlation: -
• Covariance is a statistical term that refers to a systematic relationship
between two random variables in which a change in the other reflects
a change in one variable.

• The covariance value can range from -∞ to +∞, with a negative value
indicating a negative relationship and a positive value indicating a
positive relationship.
• The greater this number, the more reliant the relationship. Positive
covariance denotes a direct relationship and is represented by a
positive number.
• A negative number, on the other hand, denotes negative covariance,
which indicates an inverse relationship between the two variables.
Covariance is great for defining the type of relationship, but it's
terrible for interpreting the magnitude.

• Positive: An increase in one of the variables results in an increase in

the other.
• Negative: The variables are in opposite directions.
• Zero: Then, no relationship exists.
A. Pearson correlation coefficient: - The Pearson correlation coefficient (r) is the
most common way of measuring a linear correlation. It is a number between –1 and 1
that measures the strength and direction of the relationship between two variables.

Pearson Correlation type Interpretation Example

correlation
coefficient (r)

Between 0 and 1 Positive correlation When one variable Baby length & weight:
changes, the other
variable changes in
the same direction. The longer the baby, the
heavier their weight.

0 No correlation There is no Car price & width of

relationship between windshield wipers:
the variables. The price of a car is not
related to the width of its
windshield wipers.
Between Negative When one variable Elevation & air pressure:
0 and –1 correlation changes, the other The higher the elevation,
variable changes in the lower the air pressure.
the opposite direction.

where
• cov is the covariance
• σx is the standard deviation of X
• σy is the standard deviation of Y

B. Spearman's rank correlation coefficient:- A correlation can easily be drawn as

a scatter graph, but the most precise way to compare several pairs of data is to use a
statistical test - this establishes whether the correlation is really significant or if it
could have been the result of chance alone.
Spearman's Rank correlation coefficient is a technique which can be used to
summarise the strength and direction (negative or positive) of a relationship between
two variables. The result will always be between 1 and minus 1.
❖ Probability Distribution Function: - a distribution function is a
mathematical expression that describes the probability of different possible
outcomes for an experiment.

Let us say we are running an experiment of tossing a fair coin. The possible events
are Heads, Tails. And for instance, if we use X to denote the events, the
probability distribution of X would take the value 0.5 for X=heads, and 0.5 for
X=tails

o Data Types: - we have Qualitative and Quantitative data. And in Quantitative

data, we have Continuous and Discrete data types.
➢ Continuous data is measured and can take any number of values in a given
finite or infinite range. It can be represented in decimal format. And the
random variable that holds continuous values is called the Continuous
random variable.

Examples: A person’s height, Time, distance, etc.

➢ Discrete data is counted and can take only a limited number of values. It
makes no sense when written in decimal format. And the random variable
that holds discrete data is called the Discrete random variable.

Example: The number of students in a class, number of workers in a

company, etc.
o Types of Probability Distributions
Two major kinds of distributions based on the type of likely values for the
variables are,

1. Discrete Distributions
2. Continuous Distributions

Discrete Distribution Vs Continuous Distribution

A comparison table showing difference between discrete distribution and
continuous distribution is given here.

Discrete Distributions Continuous Distribution

Discrete distributions have finite

Continuous distributions have infinite many
number of different possible
consecutive possible values
outcomes

We can add up individual values to We cannot add up individual values to find

find out the probability of an out the probability of an interval because
interval there are many of them

Discrete distributions can be

Continuous distributions can be expressed
expressed with a graph, piece-wise
with a continuous function or graph
function or table

In discrete distributions, graph

In continuous distributions, graph consists
consists of bars lined up one after
of a smooth curve
the other

Expected values might not be To calculate the chance of an interval, we

achievable required integrals
 1. The probability distribution function / probability function has
ambiguous definition. They may be referred to:
• Probability density function (PDF)
• Cumulative distribution function (CDF)
• or probability mass function (PMF)
2. But what confirm is:
• Discrete case: Probability Mass Function (PMF)
• Continuous case: Probability Density Function (PDF)
• Both cases: Cumulative distribution function (CDF)
3. Probability at certain x value, P(X=x) can be directly obtained in:
• PMF for discrete case
• PDF for continuous case
4. Probability for values less than x, P(X<x) or Probability for values
within a range from a to b, P(a<X<b) can be directly obtained in:
• CDF for both discrete / continuous case
5. Distribution function is referred to CDF or Cumulative Frequency
Function

A. Probability Density Function (PDF): - It is a statistical term that

describes the probability distribution of a continuous random variable.
The probability associate with a single value is always Zero. Below is the
formula for PDF.
B. Probability Mass Function (PMF):- It is a statistical term that describes
the probability distribution of a discrete random variable.
C. Cumulative Distribution Function (CDF):- It is another method to
describe the distribution of a random variable (either continuous or
discrete).
➢ Types of Probability Distribution: -
1. Normal or Gaussian Distribution
2. Bernoulli Distribution
3. Uniform Distribution
4. Poisson Distribution
5. Binomial Distribution
6. Log-Normal Distribution

1. Bernoulli Distribution: -

• Bernoulli distribution is a discrete probability distribution

• it’s concerned with discrete random variables {PMF}
• Bernoulli distribution applies to events that have one trial and two
possible outcomes. These are known as Bernoulli trials.

E.g.: -

▪ Tossing a coin {H,T}

Pr(H)=0.5 = p

Pr(T)=0.5 = 1-p=q

▪ Whether the person will

Pass/Fail
Pr(Pass)=0.85 = p

Pr(Fail)= 1-p = 0.15 = q

 ----→PMF=Pk*(1-P)1-K

K{0,1} ----→ is outcomes

p→ Probability of one Outcome

q→ Probability of another Outcome

2. Binomial Distribution: -
• it’s concerned with discrete random variables {PMF}
• There are two possible outcomes: true or false, success or failure, yes
or no.
• These Experiments is Performs for n trials
• Every trial is an independent trial, which means the outcome of one
trial does not affect the outcome of another trial.

E.g.: -
Tossing a Coin 10 times

=PMF
 n
Cx = n!/x!(n-x)!
Where,
n = the number of experiments
x = 0, 1, 2, 3, 4, …
p = Probability of Success in a single experiment
q = Probability of Failure in a single experiment = 1 – p

Mean, μ = np

Variance, σ2 = npq

Standard Deviation σ= √(npq)

Where p is the probability of success

q is the probability of failure, where q = 1-p

3. Poisson Distribution: -
• it’s concerned with discrete random variables {PMF}
• Describe the number of events occurring in a fixed time interval

E.g.: - No. of people visiting hospital every hour

No. of people visiting bank at 11am
P(x, λ ) =(e– λ λx)/x!
Where,
e is the base of the logarithm
x is the number of occurrences (x=0,1,2,…..)
λ Expected no. of events occur at

every time
interval
4. Normal or Gaussian Distribution: -
• it’s concerned with Continuous random variables {PDF}
• Normal distributions are symmetrical, but not all symmetrical
distributions are normal
Characteristics of Normal Distribution
• mean = median = mode
• Symmetrical about the center
• Unimodal
• 50% of values less than the mean and 50% greater than the mean
 Here, x is value of the
variable; f(x) represents the
probability density function; μ
(mu) is the mean; and σ (sigma) is
the standard deviation.

Examples that mainly follow a Normal Distribution

1. Blood pressure

2. Height of students in a class

3. Errors while taking measurements

4. Marks in a test, etc

Some Basic Terminology

1. Mean(μ) — is the average of a data set.

2. Median — is the middle of the set of numbers.

3. Mode — is the most common number(peak) in a data set. A

unimodal distribution only has one peak in the distribution, a
bimodal distribution has two peaks, and a multimodal
distribution has three or more peaks.
4. Bias — is the tendency of a statistic to overestimate or
underestimate a parameter.

5. Skewness — refers to a distortion or asymmetry that deviates

from the symmetrical bell curve, or normal distribution, in a
set of data.
6. Standard deviation(σ) — is a measure of the amount of
variation or dispersion of a set of values. A low standard
deviation indicates that the values tend to be close to the mean
of the set, while a high standard deviation indicates that the
values are spread out over a wider range.
• Empirical Rule of Normal Distribution: - The empirical rule
in statistics, also known as the 68 95 99 rule, states that for normal
distributions, 68% of observed data points will lie inside one standard
deviation of the mean, 95% will fall within two standard deviations, and
99.7% will occur within three standard deviations.

• 68.3% of values are within 1 standard deviation (1σ) of the mean

• 95.5% of values are within 2 standard deviations (2σ) of the mean

• 99.7% of values are within 3 standard deviations (3σ) of the mean

It is always good to know the standard deviation because we can say that
any value is:
• likely to be within 1 standard deviation (1σ)(68.3 out of 100 should be)
• very likely to be within 2 standard deviations (2σ) (95.5 out of 100
should be)
 • almost certainly within 3 standard deviations (3σ) (997 out of 1000
should be)

5. Uniform Distribution: -
I. Continuous Uniform Distribution (PDF)
II. Discrete Uniform Distribution (PMF)

I. Continuous Uniform Distribution (PDF): -

• Continuous random variables {PDF}
II. Discrete Uniform Distribution (PMF): -
• Discrete random variables {PMF}
➢ Standard Normal Distribution Z-Score: - The standard normal
distribution is a specific type of normal distribution where the mean is
equal to 0 and the standard deviation is equal to 1.

The normal distribution is the most commonly used probability distribution in

statistics.

It has the following properties:

• Symmetrical
• Bell-shaped
• Mean and median are equal; both located at the center of the
distribution
The mean of the normal distribution determines its location and the standard
deviation determines its spread.
 A standard normal distribution has the following properties:

• About 68% of data falls within one standard deviation of the mean
• About 95% of data falls within two standard deviations of the mean
• About 99.7% of data falls within three standard deviations of the
mean

• What is a “Z-score”?

The number of standard deviations from the mean is also called the
“Standard Score”, “sigma” or “Z-score”. Simply, a Z-score describes the
position of a raw score in terms of its distance from the mean, when
measured in standard deviation units.

z = (x – μ) / σ

• Z is the “z-score” (Standard Score)

• x is the value to be standardized
• μ (mu) is the mean
• σ (sigma) is the standard deviation
Standardizing: - Standardization or Z-Score Normalization is the
transformation of features by subtracting from mean and dividing by
standard deviation. This is often called as Z-score.

We can take any Normal Distribution and convert it to The Standard Normal
Distribution.
S.NO. Normalization Standardization

Minimum and maximum value of Mean and standard deviation is used

1.
features are used for scaling for scaling.

It is used when features are of It is used when we want to ensure zero

2.
different scales. mean and unit standard deviation.

3. Scales values between [0, 1] or [-1, 1]. It is not bounded to a certain range.

4. It is really affected by outliers. It is much less affected by outliers.

Scikit-Learn provides a transformer Scikit-Learn provides a transformer

5. called MinMaxScaler for called StandardScaler for
Normalization. standardization.

This transformation squishes the n- It translates the data to the mean vector
6. dimensional data into an n- of original data to the origin and
dimensional unit hypercube. squishes or expands.

It is useful when we don’t know about It is useful when the feature

7.
the distribution distribution is Normal or Gaussian.

It is a often called as Scaling It is a often called as Z-Score

8.
Normalization Normalization.
Central limit Theorem: - For large sample sizes, the sampling distribution of
means will approximate to normal distribution even if the population distribution is
not normal.

1. The sample size is sufficiently large. This condition is usually met if the
size of the sample is n ≥ 30.
2. The samples are independent and identically distributed, i.e., random
variables. The sampling should be random.
3. The population’s distribution has a finite variance. The central limit
theorem doesn’t apply to distributions with infinite variance.
 1. What is Central Limit Theorem in Statistics?
Central Limit Theorem in statistics states that whenever we take a large
sample size of a population then the distribution of sample mean
approximates to the normal distribution.

2. When does Central Limit Theorem apply?

Central Limit theorem applies when the sample size is larger usually
greater than 30.

3. Why is Central Limit Theorem important?

Central Limit Theorem is important as it helps to make accurate prediction
about a population just by analyzing the sample.

4. How to solve Central Limit Theorem?

The Central Limit Theorem can be solved by finding Z score which is
calculated by using the formula.

how to check if distribution is normal or not

If you want to check the normal distribution using a histogram, plot the normal
distribution on the histogram of your data and check that the distribution curve of
the data approximately matches the normal distribution curve. A better way to do
this is to use a quantile-quantile plot, or Q-Q plot for short.
6. Log-Normal Distribution: - A log-normal distribution is a continuous
distribution of random variable y whose natural logarithm is normally
distributed. For example, if random variable y = exp { y } has log-normal
distribution then x = log ( y ) has normal distribution.
 ➢ Inferential Statistics
Statistical inference provides methods for drawing conclusions about a
population from sample data.

1. Estimate: - it is an observed numerical value used to estimate an unknown

population parameter

I. Point Estimate: - Single numerical value used to estimate the unknown

population parameter.

II. Interval Estimate: - Range of value used to estimate the unknown

Population Parameter
2. Hypothesis And Hypothesis Testing Mechanism: -

Inferential Stats is a Conclusion or inferences about the population data

➢ Hypothesis Testing Mechanism: - Hypothesis testing is a form of statistical

inference that uses data from a sample to draw conclusions about a population
parameter or a population probability distribution

- Null Hypothesis (H0):- The Null Hypothesis (H0) aims to nullify the
alternative hypothesis by implying that there exists no relation between
two variables in statistics. It states that the effect of one variable on the
other is solely due to chance and no empirical cause lies behind it.

- Alternative Hypothesis (H1):- Alternative Hypothesis (H1) or the

research hypothesis states that there is a relationship between two
variables (where one variable affects the other). The alternative
hypothesis is the main driving force for hypothesis testing.
3.
4.
5.
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7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
3. P-Value: - P value is a number, calculated from a statistical test, that
describes how likely you are to have found a particular set of observation if
the null hypothesis were true, p values are used in hypothesis testing to help
decide whether to reject the null hypothesis
4. Confidence Interval and Margin of Error: - Confidence intervals are a
range of values within which we can be confident that the true population
parameter lies. This range is estimated based on a sample from the
population and a chosen level of confidence. The level of confidence speaks
to the likelihood that the genuine populace parameter lies inside the certainty
interim.

Confidence Interval = [lower bound, upper bound]

The margin of error is equal to half the width of the entire confidence
interval.

lower bound, upper bound = sample mean ± margin of error

➢ Hypothesis Testing and Statistical Analysis: -
1. Z-Test Average
2. T-Test
3. Chi Square ---------→ Categorical
4. Anova--------→ Variance

1. Z-Test:-
• Population standard deviation is known
• Large sample size (n > 30)
• Z-Test = (x̅ – μ) / (σ / √n)
σ/√n----→ Standard Error
σ -----→ Population standard deviation
μ-----→ Population Mean
x̅-----→ Sample Mean
n----→ No. of Sample
• Degrees of Freedom Not applicable
• We Used Z Test when the population standard deviation is known
and the sample size is large

The z-test is also a hypothesis test in which the z-statistic follows a

normal distribution. The z-test is best used for greater-than-30 samples
because, under the central limit theorem, as the number of samples gets
larger, the samples are considered to be approximately normally
distributed.

Confidence interval = Point Estimate ± margin of error

Confidence interval = sample mean ± margin of error
C.I=x̅ ± Z α /2* σ/√n
σ/√n----→ Standard Error
σ -----→ Population standard deviation
α -----→significance level
n-----→ no. of samples
2. T-Test: - A t-test is an inferential statistic used to determine if there is a
significant difference between the means of two groups and how they are
related. T-tests are used when the data sets follow a normal distribution and
have unknown variances, like the data set recorded from flipping a coin 100
times.
• Population standard deviation is unknown
• Our sample size is small, n < 30
• T-Test = (x̅ – μ) / (s / √n)
σ/√n----→ Standard Error
s -----→ sample standard deviation
μ-----→ Population Mean
x̅-----→ Sample Mean
n----→ No. of Sample
• Degrees of Freedom is n-1
• We Used T-Test when the population standard deviation is
unknown or the sample size is small
• T-tests can be dependent or independent.

Confidence interval = Point Estimate ± margin of error

Confidence interval = sample mean ± margin of error
C.I=X̅ ± T α /2* s/√n
s/√n------→ Standard error
s-----→ Sample variance
α -----→significance level
n-----→ no. of samples
 • Z-Test & T-Tests are Parametric Tests, where the Null Hypothesis is less
than, greater than or equal to some value.
• A z-test is used if the population variance is known, or if the sample size is
larger than 30, for an unknown population variance.
• If the sample size is less than 30 and the population variance is unknown, we
must use a t-test.

Q1. When Are Z-test and T-test Used?

A. A z-test is used to test a Null Hypothesis if the population variance is known, or

if the sample size is larger than 30, for an unknown population variance. A t-test is
used when the sample size is less than 30 and the population variance is unknown.
Q2. What Is the Difference Between a Two-Tailed and One-Tailed Z-Test?

A. A one-tailed z-test allows for the possibility of rejection of the Null Hypothesis
in only one direction, whereas a two-tailed z-test tests the possibility of rejection in
both directions (left and right).

Q3. What Are the Assumptions of the T-Test and Z-Test?

A. It is assumed that the z-statistic follows a standard normal distribution, whereas

the t-statistic follows the t-distribution with a degree of freedom equal to n-1,
where n is the sample size

3. Chi Square: -
• Chi Square test clams about Population proportions
• It is a non-parametric test is performed on categorical (nominal or
ordinal) data
4. Anova(F-Test): -
• ANOVA, which stands for Analysis of Variance, is a statistical
test used to analyze the difference between the means of more than
two groups.
• ANOVA compares the variation between group means to the
variation within the groups. If the variation between group means is
significantly larger than the variation within groups, it suggests a
significant difference between the means of the groups.

• ANOVA calculates an F-statistic by comparing between-group

variability to within-group variability. If the F-statistic exceeds a
critical value, it indicates significant differences between group
means.
• ANOVA is used to compare treatments, analyse factors impact on a
variable, or compare means across multiple groups.
• Types of ANOVA include one-way (for comparing means of groups)
and two-way (for examining effects of two independent variables on
a dependent variable).
Types of Anova

1. One Way Annova:- One factor with at least 2 levels, these levels are
independent

2. Repeated measures annova:- One factor with atleast 2 levels, levels are
dependents
3. Factorial Annova:- Two or More factors (Each of which with at least 2
levels)
Levels can be either independent or dependent

➢ Hypothesis Testing of Annova:-

• Null Hypothesis H0 : μ1 = μ2 = μ3 = - - - - - μk
• Alternate hypothesis H1 : At least one of mean is not equal
• F Test Statistics

F = Variation between Samples / variation within samples

➢ One Way Annova:- One Factor with at least 2 levels, levels are
independent